President Jokowi Presents The Indonesian-Kenya Preferential Trade Agreement Initiative

President Joko Widodo and the President of the Republic of Kenya William Ruto during a speech at the State House, Nairobi, Kenya, Monday (21/8/2023). (ANTARA/HO-Biro Press of the Presidential Secretariat).

JAKARTA - President Joko Widodo (Jokowi) conveyed Indonesia's initiative to form a Preferential Trade Agreement (PTA) with Kenya to strengthen trade relations.

"Indonesia can be the entrance to Kenya to ASEAN and Kenya can be the entrance to Indonesia to Sub-Saharan Africa. For this reason, I encourage the formation of a Preferential Trade Agreement as soon as possible," President Jokowi said in a press statement after a bilateral meeting with the President of the Republic of Kenya William Ruto, at the State House, Nairobi, Republic of Kenya, reported by ANTARA, Monday, August 21.

According to Jokowi, trade between the two countries is experiencing an increasing trend every year with a transaction value of 2022 reaching around 507 million US Dollars.

"The increase in trade which reached 507 million US Dollars in 2022 and needs to be expanded by exploring various other opportunities," he said.

On the same agenda, the President of the Republic of Kenya William Ruto welcomed the formation of the PTA.

"We will work on the Preferential Trade Agreement between the two countries," he said.

In addition, President Jokowi also conveyed Indonesia's desire to increase investment in the energy sector in Kenya by asking for local government support so that the investment can be realized immediately.

"I ask for support so that Pertamina's investment with the Geothermal Development Company is worth 1.5 billion US dollars and with the Guma Group it can be realized and expanded in the field of new and renewable energy," he said.

The Head of State also said that in the future a Bilateral Investment Treaty (BIT) between Indonesia and Kenya needs to be formed.

In the health sector, the President hopes that cooperation between the Food and Drug Supervisory Agency of each country can be expanded for medicinal products and other pharmaceutical products.

"Cooperation between BPOM and BPOM between the two countries and the collaboration between Biofarma and BioVax with Generics Africa Ltd regarding vaccines and pharmaceutical products, I hope it can be expanded to other medicinal products and pharmaceutical products," he said.

In addition, President Jokowi also conveyed Indonesia's commitment to providing assistance to Kenya through Indonesia-Africa Infrastructure Dialogue (IAID) in the fields of health, food security, and disaster management.

"In the future, this will continue to be improved, especially for sectors that are Kenya's priority," he said.